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Show Page 2 THE UTAH STATESMAN THE UTAH STATESMAN A Weekly Newspaper Devoted to Good Government HARRY B. MILLER, Publisher H. V. WRIGHT, Editor Entered as 2nd Class matter at the Post Office at Salt Lake City, Utah, under the Act of March 3, 1879 Subscription rate $1.00 per year Published weekly at 421 Church Street Salt Lake City, Utah WORLD: Friday, February 20, 1959 The Soviet Navys Buildup A statement made by Admiral Burke, our Chief of Naval Operations, may astonish those laymen who have come to believe that nuclear bombs, aircraft, guided missiles and the like have more traditional weapons and forces obis the most sigsolete: "The Soviet Navy build-u- p nificant development in Soviet planned strategy ur 2,000-mile-and-ho- since World War II." Member of Utah State Press Member of National Editorial Association NATION: This helps to explain the importance of a new and definitive book, "The Soviet Navy," (Frederick A. Prageger, New York: $7.50). Edited by Commander M. G. Saunders, RN, it is the work of many minds. The chapters were contributed by a distinguished international team of 18 men including American, British, French and German experts. Beginning with discussions and descriptions of Russia's maritime past and her Navy's role in the two World Wars, Soviet naval power, straall phases of present-da- y with. tegy and purpose are comprehensively dealt NO COMMENT by Douthat WASHINGTON, D. C. The economy forces in paign to hold down Government expenditures will revolt which will restrain the spark a grass-root- s Dealers. grandiose spending ideas of the New-Fa- But there is real danger that this record may be blemished if Mr. Eisenhower should veto the Admittedly, this is an uphill battle for Congress thus far seems more interested in spending than in This situation is what Mr. Eisenhower had in ir balancing the budget but the economy bloc contends that the "voice of the people" has unlimited power if used effectively. So, those in Congress who oppose profligate spending are supporting wholeheartedly the Administration's efforts to enlist everyone with emphasis on the housewives and breadwinners in the battle for Government economy. It is hoped that if the people back home are made to really understand that deficit spending means higher prices which means a cheaper dollar they will then demand that their Senators and Representatives vote against unessential spending. Such a grass-root- s uprising would be of inestimable assistance to President Eisenhower in his effort to hold the line against Congressional appropriations which would unbalance his $77 billion budget for the next fiscal year. Right now, Mr. Eisenhower is fighting a far thus losing battle to hold federal aid voted by Congress for housing and for airport construction to the amount proposed in the Administration's budget. Despite pleas for fiscal soundness, the Senate speedily voted for spending which overshot the Administration's proposals and would mean a red ink budget. And both housing and airport legislation which also would breach the Administration's irig figure has started through the House of Representatives. Whatever Congress finally agrees upon, however, will confront a possible presidential veto. A presidential veto can be overridden only by vote of both branches of Congress a that has hot yet happened since Mr. something Eisenhower entered the White House more than six years ago. two-thir- ds NATION: of progress." To put it bluntly, they urge a tax reform to elim- inate road blocks to business expansion and job creation and beginning NOW. HR 3000 and HR 3001 call for coordinated reductions in individual I wise. mind when he warned a recent press conference makes against reckless Government spending which and everything more expensive for the housewife for everyone else. as he had done He served vigorous notice to do "every possible before that he was going within Government I to can" spending keep thing i its income. long-rang- Rear-Admir- al Ernest M. Eller, USN. Admiral Eller has distinguished himself as a combat officer and as a writer on naval matters; in 1956 he was assigned to duty as Director of Naval History in the Navy Department. His exeremely significant contribution carries the title, "Implications of Soviet Sea Power," and brings into focus, the menace to the West that is involved. Admiral Eller believes that when Khushchev, world, said, "We will bury addressing the He also believes that the that. you," he meant just has progressed so postwar Soviet naval build-u- p that much even military men, less the public, swiftly have developed a blind spot as to the significance of Soviet naval policy. The big point, Admiral Eller stresses, is that the Soviet's principal opponent, the United States, anti-Sovi-et Arousing the people back home to combat the fiscal peril also was discussed by Mr. Eisenhower with Republican congressional leaders. The consen- can be reached only by crossing thousands of miles k of sea. Britain also lies overseas. And the rest of sus of those present was summed up by Rep. folas House leader, the free world nations lie overseas or draw power of Indiana, the Republican from the sea. Free world strength depends greatly lows: "It is high time that the people who believe in on materials that must move by sea for instance, a balanced budget make their voices heard in the Middle Eastern oil. Thus, command of the seas is overwhelmingly important and there are no signs Capital." Asked if Mr Eisenhower shared that view, Mr. its importance will diminish. Moreover, from a military standpoint, Adminal Halleck replied: Eller goes on, naval power is least vulnerable to "He did definitely." surprise nuclear attack. A modem task force, Advoted Senate apthe that miral- Burke has said, now covers an ocean area the It was in this setting $2,675,000,000 federal housing size of New York state. The vessels are so widely proval of a known program which was more than $1 billion above the dispersed that the most powerful would destroy but one ship. amount recommended by Mr. Eisenhower. It is impossible to do anything like justice to r $465 And the next day it passed a million federal aid to airports bill. Mr. Eisenhower Admiral Eller's summation .in a brief review. But his final paragraphs give the substance of his pohad favored $200 million. sition: "The free world will not continue free actions were' unless it holds the sea, Viewed in this light the imThese two budget unbalancing described by Senator Dirksen of Illinois, the Re- plications of the surge upward in Soviet sea strategy publican leader, as "riscal suicide on the install- are grave and sobering. "The free world has many other problems than ment plan." the sea. Success there alone cannot assure And he raised this perienent question for those holding Yet failure there assures the failure of libconcerned about th enation's future to ponder: liberty.Without the sea the great democracies of the erty. "When you punch a hole in the dyke, how many west freedom itself will die. Ancient truths are and other holes will follow?" long truths and these words of another age of desThe answers to that question in the opinion of perate world struggle still ring true today: 'He who be secure at home must be supreme at the economy supporters, will be edtermined by would i the public's reaction to red-in- k spending programs. Hal-lec- six-ye- ar H-bo- four-yea- ... 1 U. S. TAX REFORM UNDERWAY NOW In all the talk we have heard about the perils of creeping (or galloping) inflation and how to stop it, one. solution cuts through the fiscal murk like the beam of a lighthouse on a stormy night. "Smother inflation with growth." This is the thoroughly logical and completely nonpartisan recommendation of Democratic Rep. A. S. Herlong, Jr., of Florida, and Republican Rep. Howard H. Baker, of Tennessee, and who have presented their formula in identical House bills, "to reform Federal tax rates and methods to accord with the economics voice housing and airport legislation unless the others decrees of the people" from the grass-root- In late years the Soviet Union has pursued a naval development and expansion program on a scale unrpecedenteS , in history. A comparatively . short time ago she was a minor naval power. Now she has passed Great Britain, traditionally the guardian of the seas, and is second only to the United States. She has a large surface fleet, well designed and constructed. Her naval air arm contain some 2,000 jet fighters, 1,000 jet light bombers, about 100 e jet bombers, plus various other aircraft. But it is on the submarine that the really heavy emphasis has been laid. She has by far the greatest submarine fleet ever assembled under one flag about 500, of which more than half are long range. To state the situation another way, she has 10 times as many submarines as Germany could put to sei when World War II began. As one of the contributors to "The Soviet Navy" says: "A study of the numbers and types of Russia's existing warships in relation to the geographical aspects of her sea frontiers clearly illumines the grand design of Soviet naval policy submarine warfare on a world-wid- e scale, to which the operaof surface forces the would be directly or intions directly subordinated." The big modem submarines needless to say, are capable of launching guided nuclear missiles of incredible destructive force. The final chapter of the book is the work of peand corporate income tax rates over a five-yewould 1959. first rate bracket The riod from Jan. 1, be reduced from 20 to 15 percent and the top bracket rate from 91 percent down to 47 percent with con sistent compression in rates in the intervening brackets. The 52 percent corporate income tax rate would be cut one percent a year for five years. The bills also provide for more realistic depreciation rules to bring the tax write off of plant and equipment closer to the facts of obsolescence, for e transfer of capital by individuals and reduction of taxes on estates and gifts. ''Capital is the source of all economic progress," declare the authors. "It has become increasingly obvious that the present Federal tax structure stunts ar tax-fre- economic growth since it both prohibits adequate capital accumulation and destroys capital once accumulated . . . We can't fight inflation by keeping the tax brakes on economic growth." It should be equally obvious that more rapid and consistent economic growth would provide increasingly greater revenues to the Government under the gradually declining tax rates. Hence, the sooner we get action on this legislation the better. As Messrs. Herlong and Baker have said: this legislation should have priority over competing claims of all other Government policies and pro- "... grams. It is high time for tax reform which will mean "a rebirth of the American genius for the starting and development of businesses." |